BNA’s Mourabaha plan can finance up to 90% of a new car purchase

Buying a new car without taking out a conventional loan is the promise behind a new financing formula announced by Algeria’s National Bank, or BNA. The product, called Mourabaha, targets customers seeking vehicle financing that follows Islamic finance principles.

The bank says the arrangement can cover up to 90 percent of the purchase price, with repayment extending for up to 60 months. The final amount depends on the applicant’s monthly income and the chosen repayment period, so BNA is inviting interested customers to visit a branch for a personalized simulation.

Mourabaha differs from a conventional interest-based loan. The customer chooses a vehicle from a dealer and provides the bank with the invoice and a certificate confirming its availability. BNA then purchases the car from the dealer and resells it to the customer, clearly stating the original cost and its profit margin. The repayment schedule and monthly installments are fixed before the transaction is completed.

The offer also allows a customer to add the income of a “partner customer.” According to the bank, this can be a spouse, a first-degree ascendant or a first-degree descendant. Combining incomes can increase the total amount available for financing. BNA also highlights a processing time of no more than five days and the fact that customers know the total cost and installments in advance.